Earnings estimate revisions are the most powerful force impacting stock prices.
Stocks with rising earnings estimates, as a group, have materially outperformed the S&P 500 year-after-year. Similarly, stocks with falling earnings estimates have underperformed the S&P 500 year-after-year.
Zacks has made the process of identifying stocks with changing earnings estimates easy and very profitable. Since 1988, a portfolio constructed of Zacks #1 Rank stocks has generated an average annual return of 30%. Even during the 2000-2002 bear market, the strategy generated positive returns.
The Zacks Rank is a quantitative model that uses four factors related to earnings estimates to classify stocks into five groups, ranging from "Strong Buy" to "Strong Sell". We continually process reports issued by all the brokerage houses. At any given point in time, we are monitoring well over 200,000 earnings estimates and brokerage recommendation data points, looking for any change. Our ability to gather, analyze, and distribute information quickly makes Zacks' research among the most widely used on the web.
To see how the Zacks Rank empowers individual investors to take advantage of Earnings Estimate Revision trends and benefit from the trading patterns of institutional investors, download the Zacks Rank Guide.
Zacks #1 Rank- A Strong Buy Recommendation
The Zacks Rank uses a five point scale for stock recommendations. A Zacks Rank of 1 has our "strong buy" rating- a virtual portfolio that has returned an annual average of 30%.
These are the stocks with upward revisions in earnings estimates, the most powerful indicator of potential price appreciation.
On the Zacks #1 page, you can view the current stocks with a Zacks Rank of 1, with quick links to quotes, industry outlook and in-depth company analysis. Narrow the list to particular sectors, or browse the whole list.
Click Here to See the Zacks #1 Rank Stocks
New Additions
In the life cycle of earnings estimate revisions, early action means you are in position to profit fully from the resulting increase in price. With daily access to the Zacks Rank, you get the buy signal before institutional investors make their move.
Most mutual fund, pension plan, and large portfolio managers use earnings estimates in calculating a stock's value. When estimate revisions indicate a bargain stock, they buy in- at a volume that drives up the price. Usually, these institutional buyers react slowly, giving individual investors the opportunity to buy before price movement begins.
Visit the New Additions page every day to buy #1 ranked stocks before the institutional investors, to profit fully from the Zacks Rank indicator. For more detail on how institutional investing affects stock price, and the Zacks Rank Stock Cycle, download the Zacks Rank Guide.
Click Here to see today's New Additions.
Industry Rank
In addition to buy and sell ratings for individual stocks, the Zacks Rank also tells you which industries are positioned to over- or under-perform the market. All the earnings estimate revisions within each industry are compiled and aggregated to form the Zacks Industry Rank. High performing stocks often earn the most when they are part of a growing industry. Zacks Industry Rank shows you where to look for these star performers riding an industry upswing.
Click here to see the Zacks Industry Rank List
Zacks Rank Buys
Each day, we highlight 4 stocks with a #1 Zacks Rank, grouped by investment strategy. Each recommended buy is sorted by investment strategy: Momentum, Value, Aggressive Growth, or Growth and Income. Each gets a full explanation of what our analysts like about the profiled company. Whatever your investment style, there's a new Zacks Rank Buy for you every day.
Click Here for Today's Aggressive Growth Buy
Click Here for Today's Growth & Income Buy
Click Here for Today's Momentum Buy
Click Here for Today's Value Buy
Zacks #5 Rank- Stocks You Should Sell Now
The Zacks Rank is proportionately applied to the entire universe of stocks with earnings estimates. So no matter how strong the economy is, only the very top 5% of stocks receive a Zacks #1 Rank. More importantly, approximately the same number of stocks are assigned a Zacks #5 Rank.
This equality between "Strong Buy" and "Strong Sell" recommendations makes the Zacks Rank a complete system to manage your portfolio. With daily access to the Zacks Rank, you'll see not only which stocks have a Strong Buy rating, but also which stocks you should sell right away. The #5 Ranking has been a good predictor of underperforming stocks. Since 1988, stocks ranked #5 have an average annual return of only 5.12%, less than half that of the S&P.
Click Here to See the Zacks #5 Rank Stocks |